Bond Outlook August 20th

A return to a healthy level of household indebtedness and savings by the middle of next year? Just about conceivable, but the new film, “IOUSA”, needs a big impact.

Bond Outlook [by bridport & cie, August 20th 2008]

We were debating whether there was any good news or any light at the end of the tunnel. The best we could come up with was that house prices in the USA might reach a bottom in mid 2009, thus bringing about an end to the recession. Merrill Lynch see this time horizon as probably enough to reach some key economic targets:

  • household debt servicing to come down from 14% to 10.5%

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